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External Influences on Business Activity Exam Practice Paper 1

Economic Issues Exam Practice ✍🏽

Ymix is a large cement company based in country X. Ymix is in the private sector. It supplies builders in country X with 20% of the cement they need and the rest is imported.

Ymix now has eight cement factories but plans to close two of them. This will threaten 2000 employees with redundancy.

The Managing Director said: ‘I blame the appreciation of country X’s exchange rate. The Government should help private sector businesses.’

(e) Do you think the government should help private sector businesses? Justify your answer. [6]

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Environmental and Ethical Issues Exam Practice ✍🏽

WaWay, a large manufacturing business, makes cell (mobile) phones.

WaWay exports 30% of its products. It imports most of its raw materials to help reduce total costs.

All 400 of WaWay’s employees understand the importance of quality control.

The Operations Director has asked all suppliers to ensure they do not use child labour. She is also concerned that many governments are planning to increase import controls such as quotas.

(e) Do you think that large manufacturing businesses should be concerned about ethical issues such as child labour? Justify your answer. [6]

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Business and the International Economy Exam Practice ✍🏽

Ymix is a large cement company based in country X. Ymix is in the private sector. It supplies builders in country X with 20% of the cement they need and the rest is imported.

Ymix now has eight cement factories but plans to close two of them. This will threaten 2000 employees with redundancy. The Managing Director said: ‘I blame the appreciation of country X’s exchange rate. The Government should help private sector businesses.’

(c) Outline how the appreciation of country X’s exchange rate might affect Ymix. [4]

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